factors affecting investment decision in banking sector of

Journal of Islamic Financial StudiesISSN (2469-259X)

J. Islam. Fin. Stud. 4, No.1 (June-2018)

http://journals.uob.edu.bh

Factors Affecting investment Decision in banking sector of Pakistan: Analysis of Islamic and conventional Banks

Zohaib Yaseen¹ and Syeda Rabia Naqvi ²

1,2The University Of Lahore, Lahore Pakistan

Received 25 Jan. 2018, Accepted 18 April 2018, Published 1 June 2018

Abstract. ,Q� WKLV� UHVHDUFK�� WKH� IDFWRUV� WKDW� DIIHFW� LQGLYLGXDO� LQYHVWRU� ZKHQ� KH�VKH� LQYHVWV� LQ� EDQNLQJ� VHFWRU� RI�Pakistan have been focused. Six independent variables i.e. Psychology, rate of return, religion, culture, customer perception and one dependent variable that is investment decision making were observed. The data was obtained WKURXJK�VXUYH\�PHWKRG�IURP�FXVWRPHUV�DQG�IURP�WKH�¿QDQFLDO�RI¿FHUV�RI�FRQYHQWLRQDO�DQG�,VODPLF�EDQNLQJ�VHFWRUV�of Pakistan. Descriptive analysis was conducted to get empirical analysis results in summary along-with numerical representation. Cronbach Alpha was applied for the reliability analysis of the survey design. Hypotheses testing was also conducted and resulted that multiple factors do effect on the investment decision making except culture DQG�FXVWRPHU�SHUFHSWLRQ�DV�WKH\�KDG�LQVLJQL¿FDQW�HIIHFW�RQ�LQYHVWPHQW�GHFLVLRQ�PDNLQJ��$OWKRXJK�VHYHQ�WRS�EDQNV�of Pakistan were selected with a bunch of tested important variables. However, its quantity may be enriched to VXEVWDQWLDWH�DQG�LPSURYH�WKH�¿QGLQJV�

Keywords: Psychology, Rate of interest, Culture, Religion, Customer Perception, Investment, Islamic and Conventional Banking

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1. Introduction

“You could carve out the inside of a brick and hide your money in it for safe keeping. It’s certainly safer than keeping it in the bank!” Nicole McKay (June, 2012)

,QYHVWPHQW�PHDQV� VSHQGLQJ� RI�PRQH\� LQ� GLIIHUHQW� ¿QDQFLDO� DVVHWV� RU� LQVWLWXWLRQV� IRU� XQFHUWDLQ�future reward in return and considers risk as well in this process (Alagu, 2013). There are three types RI� LQYHVWRUV� OLNH� FRQVHUYDWLYH��PRGHUDWH� DQG� DJJUHVVLYH� �.DYLWD�� 7UDGLWLRQDO�¿QDQFLDO� WKHRU\�discuss people take decision rationally, but in the same time some people also do irrational decision as ZHOO�WKDW�DIIHFW�WKHLU�IXWXUH��9HOPXUXJDQ��

In traditional way investors prefer to invest in Bank accounts, in Gold, silver, mutual funds, SRVW� RI¿FH�� LQVXUDQFH� FRPSDQLHV�� DQG� LQ� DOWHUQDWLYH�ZD\� LQ� VWRFN�PDUNHW�� GHULYDWLYHV�� SRUWIROLR� HWF��Parimaluckanthi (2015) equity market is public market for sale trading or purchases of shares (Renuka, 2016). An investor who does not want to take risk of their capital they prefer to invest in banking sector EHFDXVH�EDQNLQJ�RIIHULQJ�UHDVRQDEOH�UDWH�RI�UHWXUQ�ZLWK�OHVV�ULVN��5L]ZDQ��,VODPLF�EDQNV�RIIHULQJ�WR�WKHLU�LQYHVWRUV�6DYLQJ�DFFRXQW�LQ�ZKLFK�SDUWLFLSDWLRQ�RI�ERWK�EDQN�DQG�LQYHVWRUV�WKH\�VKDUH�LWV�SUR¿W�DQG�ORVV�ZLWK�ÀXFWXDWLRQV�RI�LWV�LQYHVWPHQW�UDWH�WKDW�GRQ¶W�UHPDLQ�VDPH��0RQD�(VDP�)D\HG��,Q�Pakistan the Investors’ decision making is based on their risk taking attitude and their studies about stock performance, market conditions (M. Yasir, 2014).

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http: //dx.doi.org/10.12785/jifs/040105

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1.2. Objectives of the study

In this study, it is to investigate the effects of different factors that affect investment decision in ,VODPLF�DQG�FRQYHQWLRQDO�EDQNLQJ�VHFWRUV�RI�3DNLVWDQ��6SHFL¿FDOO\��WKLV�VWXG\�DLPV�WR�

1. Determine basic driving forces of investment in Islamic and conventional banks.2. To check the factors that effect on an individual for making an investment and what the individual requires.3. Through this study the purpose is to check the perception of customers regarding their choice for investment in Islamic and conventional banking sectors 4. And why an individual feels uncomfortable during their decision making

2. Literature Review

Bakar (2016) investigated “the impact of Psychological factors on investment decision making LQ�0DOD\VLDQ�VWRFN�PDUNHW��$�FDVH�RI�.ODQJ�9DOOH\�DQG�3DKDQJ´��7KH�JHRJUDSKLFDO�DUHD�RI�UHVHDUFK�ZDV� 0DOD\VLD�� $QG� WKH� LQGHSHQGHQW� YDULDEOHV� RI� WKLV� UHVHDUFK� %DNDU� XVHG� ZHUH� RYHUFRQ¿GHQFH��conservatism, herding attitude and availability bias and the dependent variable was decision making. In the Methodology his research was primary and he collected data through questionnaires. The SRSXODWLRQ�RI�WKH�UHVHDUFK�ZDV�0DOD\VLDQ�VWRFN�PDUNHW�DQG�WKH�VDPSOH�VL]H�ZDV��UHVSRQGHQWV�ZLWK�SURIHVVLRQ�%DQN�RI¿FHUV��H[HFXWLYHV��OHFWXUHUV��VWXGHQWV�RI�¿QDQFH�ZKR�LQYROYHG�LQ�0DOD\VLDQ�VWRFN�market. Snow ball and quota sampling used in this research and multiple regression analysis used with the help of SPSS and IBM soft wares. the conclusion is individual investor psychological factor play important role in their investment decision making according to this research there were four factors WKDW��LQFOXGHG�LQ�SV\FKRORJ\�OLNH�RYHUFRQ¿GHQFH��FRQVHUYDWLVP��KHUGLQJ�DWWLWXGH�DQG�DYDLODELOLW\�ELDV�DIIHFWHG� WKH� LQYHVWRU�GXULQJ� WKHLU�GHFLVLRQ�PDNLQJ�RYHUFRQ¿GHQFH�DQG�DYDLODELOLW\�ELDV�KDG�SRVLWLYH�impacts on decision making and others like conservatism had negative impact, herding attitude had no impact in investor’s decision making process.

Meutia (2016) investigated “empirical research on rate of return, interest rate and Mudarbah deposit”. The geographical area was Indonesia. The data range in this study is from 2012 to 2015. The YDULDEOHV�0HXWLD�XVHG�LQ�KLV�UHVHDUFK�ZHUH�LQWHUHVW�UDWH��SUR¿W�ORVV�VKDULQJ��0XGDUEDK�GHSRVLW�DQG�UDWH�of return and the dependent variable was decision making. In methodology its secondary type research and the data collected from Indonesia monthly statistical bulletin from 2012 to 2015 and regression analysis applied on data with Levine’s test. Its descriptive statistics applied with SPSS software. In FRQFOXVLRQ�¿QG�RXW�WKH�KRZ�LQWHUHVW�UDWH�DQG�UDWH�RI�UHWXUQ�LQÀXHQFH�RQ�0XGDUEDK�GHSRVLW�RI�WKH�,VODPLF�EDQNV�RI�,QGRQHVLD�VR�DIWHU�UHJUHVVLRQ�DQDO\VLV�WKH�UHVXOWV�ZDV�WKH�LQVLJQL¿FDQW�LPSDFW�RI�UDWH�RQ�UHWXUQ�RQ�,VODPLF�EDQN�GHSRVLW�DQG�LQWHUHVW�UDWH�DOVR�KDV�LQVLJQL¿FDQW�LPSDFW�RQ�GHSRVLW�LQ�EDQNV�

Zakiah (2016) investigated “behavioral determinants and their impacts on customers saving deposits in Islamic banks”. The geographical location of this research was Malaysia. And the data range ZDV�XVHG�IURP��$SULO��WR��$SULO��7KH�YDULDEOHV�ZHUH�XVHG�LQ�WKHVH�UHVHDUFK�GHPRJUDSKLFDO�IDFWRUV��UHOLJLRXV�REOLJDWLRQ��UHSXWDWLRQ��SUR¿W�DQG�LQYHVWPHQW�DQG�WKH�GHSHQGHQW�YDULDEOH�ZDV�GHFLVLRQ�making. In the methodology the population was bank customer of all Islamic banks and the sample VL]H�ZDV��EDQNLQJ�FXVWRPHU�WKDW�ZHUH�GLIIHUHQW�RQ�WKH�EDVH�RI�WKHLU�DJHV��PDWHULDO�VWDWXV�DQG�LQFRPH�etc. and research conducted with survey method through online questionnaires and t-test applied for DQDO\VLV� DQG�RQH�ZD\�$129$��PXOWLSOH� UHJUHVVLRQ� DQG� FRUUHODWLRQ� DQDO\VLV�ZLWK� WKH� KHOS� RI�6366�software. In conclusion we checked the Islamic ethical behavior of customers with different factors like demographic factors, the reputation of the bank, as Muslim religious obligations that are positively affected during decision making process of investors to deposit in Islamic bank because it gives FRQ¿GHQFH�WKDW�EDQNLQJ�LV�DFFRUGLQJ�WR�6KDULDK�

59J. Islam. Fin. Stud. 4, No. 1, 57-74 (June-2018)


$EGXVVDODP� �� H[DPLQHG� ³WKH� LQÀXHQFH� RI� FXOWXUH� DQG� UHOLJLRQ� RQ� WUXVW� LQ� WKH� HPHUJLQJ�¿QDQFLDO�PDUNHW�LQ�/LE\D´��7KH�JHRJUDSKLFDO�ORFDWLRQ�LV�/LE\D�DQG�WKH�GDWD�UDQJH�ZDV�LQWHUYLHZV�IURP�12:0 to 15:0 and it’s for 1H and 2.5H duration for interview. And the independent variables of this study were culture, religion and trust and the dependent variable was decision making. In methodology that was primary research used through interviews. The population of this study was Libya stock exchange DQG�WKH�VDPSOH�VL]H�ZDV��UHVSRQGHQW��RI¿FHUV�DQG��EURNHUV�DQG�WKHPDWLF�DQDO\VLV�DSSOLHG�RQ�WKLV�research data with pre structural statements. In conclusion there is relation between culture and religion LQ�/LE\D�FXOWXUH�LV�XQFHUWDLQ�WKH\�DUH�ZLOOLQJ�WR�WDNH�ULVN�IRU�PDNLQJ�SUR¿W��EXW�LQ�/LE\D�VWRFN�PDUNHW�ZH�FDQ�VHH�UHOLJLRQ�DIIHFW�QHJDWLYHO\�RQ�VWRFN�PDUNHW�IRU�WKLV�VROXWLRQ�,VODPLF�¿QDQFH�VWDUWHG�WR�RYHUFRPH�this issue and complete the market, trust was for the investors to trust on products that were according to their requirement and in the last culture and religion were basic for investors in their decision making of their investments.

Faruq (2014) investigated “perception of bankers and customers toward deposit and investment mechanism of Islamic and conventional banking: Empirical evidence from Bangladesh”. The research DUHD�ZDV�%DQJODGHVK�DQG�WKH�YDULDEOHV�)DUXT�XVHG�LQ�KLV�VWXG\�ZHUH�SUR¿W�LQ�,VODPLF�EDQNV��LQWHUHVW�rate in conventional banks, return and security and the dependent variable was decision making. In methodology Faruq research was primary nature in which data collected from questionaries’ and the SRSXODWLRQ�ZDV��,VODPLF�DQG��FRQYHQWLRQDO�EDQNV�DQG�WKH�VDPSOH�VL]H�ZDV��FXVWRPHUV�DQG��bankers and information collected through audio interview and questionnaires and non-probability VDPSOLQJ�WHFKQLTXH�XVHG�DQG�ZLWK�WKH�KHOS�RI�FRQ¿UPDWRU\�IDFWRU�DQDO\VLV�DQG�HTXDWLRQ�PRGHO�XVHG�in this research.in the conclusion customers of both Islamic and conventional both are confused about Islamic and conventional banks product and people have not proper knowledge about what is difference between both banking and regulations.

3. Methodology

3.1: Nature of study: This research deals with primary nature of data and the survey will conduct to identify the factors that affect investors during their investment decision making in both banking sector of Pakistan. And type of research includes quantities with questionnaires. Data had been collected from different Islamic and conventional Banks of Pakistan.

3.2: Population & Sample size: The population of this study is 5 Conventional banks and two Islamic banks. The names of the selected banks are Habib Bank limited, MCB limited, UBL limited, %DQN�$O�+DELE��%DQN�RI�3XQMDE��0HH]DQ�EDQN�OLPLWHG�DQG�'XEDL�,VODPLF�EDQN�

From the population of the study, 301 samples of banking customers and 397 samples of bankers ZKR�ZRUN�DV�¿QDQFLDO�RI¿FHUV�IRU�WKLV�VWXG\�KDG�EHHQ�REWDLQHG��7KH�WRWDO�VDPSOHV�DUH��

3.3: Unit of Analysis: All Islamic and conventional banking sectors’ customers were respondent in this research who invested in banking sectors such as businessmen, private and Govt. job holders, students, professionals, housewives, Muslims and non- Muslims customers.

3.4: Model: Two regression models have been prepared to test the impact of independent variables on dependent variable in Islamic and conventional banks. The models have been derived from the previously used models by different researchers.

Y (Decision making in Islamic Banks) = a+b1(religion)+b

2(culture)+b

3(ROR)+b

4(psychology)+b

5

(Customer perception)+ eY (Decision making in Conventional Banks) = a+b

1(religion)+b

2(culture)+b

3(ROR)+b

4(psycholo

gy)+b5(Customer perception)+ e



3.5: Hypothesis:

+� �7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� UHWXUQ� RQ� LQYHVWPHQW� RQ� GHFLVLRQ�PDNLQJ� RI� LQYHVWPHQW� LQ�conventional banks+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�UHOLJLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV�+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXOWXUH�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV�+� � 7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� FXVWRPHU� SHUFHSWLRQ� RQ� GHFLVLRQ� PDNLQJ� RI� LQYHVWPHQW� LQ�conventional banks+� � 7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� SV\FKRORJLFDO� EDVLV� RQ� GHFLVLRQ� PDNLQJ� RI� LQYHVWPHQW� LQ�conventional banks+� �7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� UHWXUQ� RQ� LQYHVWPHQW� RQ� GHFLVLRQ�PDNLQJ� RI� LQYHVWPHQW� LQ�Islamic banks+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�UHOLJLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�EDQNV�+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXOWXUH�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�EDQNV�+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXVWRPHU�SHUFHSWLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�banks+�� 7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� SV\FKRORJLFDO� EDVLV� RQ� GHFLVLRQ� PDNLQJ� RI� LQYHVWPHQW� ,Q�Islamic banks+�� 7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� DOO� LQGHSHQGHQW� YDULDEOHV� RQ� LQYHVWPHQW� GHFLVLRQ� PDNLQJ�conventional banks+�� 7KHUH� LV� VLJQL¿FDQW� HIIHFW� RI� DOO� LQGHSHQGHQW� YDULDEOHV� LQYHVWPHQW� GHFLVLRQ� PDNLQJ� LQ�Islamic banks

3.6: Variables:

Dependent variable in Islamic and conventional banks:� %�Investment Decision making

Independent variables in Conventional & Islamic banks:� %�Psychology� %�Religion� %�Rate of Return� %�Customer Perception� %�Culture

3.7: Theoretical framework:

Kahneman and Tversky (1979) proposed prospect theory, according to their theory how an investor take decision and explained investors’ behavior and psychological factor. Kahneman and Tversky (1979) discussed in their expectation theory about investors’ behaviors who take irrational decision because investors consider only gain in all levels but do not perceive and expect risk factor.



3.8: Conceptual framework:

Figure 3.1 Islamic and conventional banks conceptual framework

3.9: Software:

The SPSS software was used for testing.

3.10: Tests:

7KH� GDWD� ZDV� DQDO\]HG� WKURXJK� &URQEDFK¶V� DOSKD� WHVW�� PXOWLSOH� UHJUHVVLRQV�� &RUUHODWLRQ��Descriptive analysis, Multi-Collinearity Test.

4. Analysis and Results

Table 4.1 Descriptive Analysis

Mean Std. Error of

MeanStd. Deviation Variance

Decision Making �� 0.10153 �� 7.195

Psychology �� 0.09495 �� 6.292

Culture 4.9427 0.10214 ��

Religion �� 0.10636 ��

Rate of Return 4.6313 0.09225 2.43716 5.94

Customer Perception �� 11.756



There are the measures of dispersion and mention in bottom side of box like In case of Decision making we can see mean value of decision making variable’s value is ��WKH�PHGLDQ�LV��DQG�the mode value is 6.00. There are the measures of dispersion and mention in bottom side of box like in FDVH�RI�GHFLVLRQ�PDNLQJ�YDULDEOHV�LWV�VWDQGDUG�GHYLDWLRQ�LV��WKH�YDULDQFH�LV��WKH�UDQJH�LV��$QG�DW�WKH�HQG�WKH�PD[LPXP�YDOXH�LV��PLQLPXP�YDOXH�LV��

,Q�FDVH�RI�SV\FKRORJ\�ZH�FDQ�VHH�PHDQ�YDOXH�RI�SV\FKRORJ\�LV��WKH�PHGLDQ�LV��DQG�the mode value is 6.00.There are the measures of dispersion and mention in bottom side of box like VWDQGDUG�GHYLDWLRQ�LV��WKH�YDULDQFH�LV��WKH�UDQJH�LV��$QG�DW�WKH�HQG�WKH�PD[LPXP�value is 25.00, minimum value is 1.00.

In case of culture we can see mean value of culture variable’s value is 4.9427, the median is 6.0000 and the mode value is 7.00.There are the measures of dispersion and mention in bottom side of box like LQ�FDVH�RI�FXOWXUH�YDULDEOHV�LWV�VWDQGDUG�GHYLDWLRQ�LV��WKH�YDULDQFH�LV��WKH�UDQJH�LV��

And at the end the maximum value is 26.00, minimum value is 1.00. In case of religion we can VHH�PHDQ�YDOXH�RI�UHOLJLRQ�YDULDEOH¶V�YDOXH�LV��WKH�PHGLDQ�LV��DQG�WKH�PRGH�YDOXH�LV��There are the measures of dispersion and mention in bottom side of box like in case of religion variables LWV�VWDQGDUG�GHYLDWLRQ�LV��WKH�YDULDQFH�LV��WKH�UDQJH�LV��$QG�DW�WKH�HQG�WKH�PD[LPXP�value is 13.00, minimum value is 1.00.

In case of Rate of return we can see mean value of rate of return variable’s value is 4.6313, the median is 4.0000 and the mode value is 6.00.There are the measures of dispersion and mention in bottom side of box like in case of rate of return variables its standard deviation is 2.43716, the variance is 5.940, the range is 11.33.And at the end the maximum value is 12.33, minimum value is 1.00.

In case of customer perception we can see mean value of customer perception variable’s value LV��WKH�PHGLDQ�LV��DQG�WKH�PRGH�YDOXH�LV��7KHUH�DUH�WKH�PHDVXUHV�RI�GLVSHUVLRQ�DQG�mention in bottom side of box like in case of customer perception variables its standard deviation LV�� WKH�YDULDQFH� LV�� WKH� UDQJH� LV��$QG�DW� WKH�HQG� WKH�PD[LPXP�YDOXH� LV��minimum value is 1.00.

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Table - 4.2-A

Variables CronBach Alpha

Psychology ��

Culture .455

Religion .601

Rate of Return .340

Customer Perception .931

Overall value .742

Cronbach’s Alpha shows the reliability of the questionnaire. So that’s why the reliability of the questionnaire is tested using Cronbach’s Alpha and it is �� for Psychology, .455 for Culture, .601 for Religion, .340 for Rate of return and .931 for Customer perception. The reliability for Religion is the



highest while for Rate of return it is lowest of them all.

4.3-A Regression Analysis (Islamic banks)

Table - 4.3-A

Model R R Square Adjusted R Square

1 .455 .207 .191

In case of Islamic banks, here in this model multiple regression analysis was conducted. This PRGHO�LV�DOVR�VLJQL¿FDQW�DQG�KDYLQJ�S��7KH�YDOXH�RI�5��LV��DQG�WKH�YDOXH�RI�DGMXVWHG�5��LV�.191 which means that the 19.1% variation in the dependent variable can be explained by this model. R2 is useful for giving some prediction about the model. And the adjusted R2 provides a better estimation about the true population value

4.4. A: Multi-Collinearity Analysis (Islamic Banks)

Table – 4.4-A

Variables Collinearity statistics

Tolerance VIF

Psychology .797 1.255

Culture .706 1.417

Religion ��

Rate Of Return .757 1.321

Customer Perception �� 1.301

In order to test whether multi-Collinearity exists or not, tests had been applied as well. Multi-Collinearity is the correlation among the independent variables, so that is why it is tested on the eleventh and twelfth hypotheses. And for the data to be reliable, it must be free from the multi-Collinearity. In RUGHU�WR�FKHFN�PXOWL�&ROOLQHDULW\��9,)��9DULDEOH�,QÀXHQFH�)DFWRU��DQG�7ROHUDQFH�OHYHO�LV�FKHFNHG��$V�SHU�VWDQGDUGV��LI�WKH�YDOXH�RI�9,)�LV�JUHDWHU�WKDQ��WKHQ�WKDW�PHDQV�PXOWL�&ROOLQHDULW\�H[LVWV�DPRQJ�variables. And if the value of Tolerance is less than .10 then that means multi-Collinearity exists among WKH�YDULDEOHV��,Q�RXU�UHVHDUFK�UHVXOWV��WKH�YDOXH�RI�9,)�RI�3V\FKRORJ\�LV��DQG�WKH�WROHUDQFH�YDOXH�is 1.255. Both values are well within the acceptable range which means that multi-Collinearity does QRW�H[LVW�LQ�SV\FKRORJ\��6DPH�LV�WKH�FDVH�ZLWK�WKH�&XOWXUH�9,)�YDOXH�LV��DQG�7ROHUDQFH�LV��,Q�FDVH�RI�5HOLJLRQ�9,)�YDOXH�LV��DQG�7ROHUDQFH�YDOXH�LV��,Q�WKH�FDVH�ZLWK�WKH�5DWH�RI�UHWXUQ�9,)�YDOXH�LV��DQG�7ROHUDQFH�LV��DQG�LQ�WKH�FDVH�ZLWK�WKH�&XVWRPHU�SHUFHSWLRQ�9,)�YDOXH�LV��DQG�Tolerance is 1.301. So based on the results, it is concluded that multi-Collinearity is not present in the selected independent variables.

4.5-A- Auto-correlation Analysis (Islamic Banks)

Table – 4.5-A

Durbin Watson

1.771



7KH�YDOXH�RI�'XUELQ�:DWVRQ�LV��ZKLFK�PHDQV�WKDW�DXWR�FRUUHODWLRQ�GRHV�QRW�H[LVW�LQ�RXU�GDWD��Our results are free from auto-correlation.

4.6-A-Correlation Analysis (Islamic Banks)

Table - 4.6-A

Variables Karl Pearson’s Correlation (6LJQL¿FDQFH��WDLOHG

Psychology .390** 0.00

Culture ��** 0.00

Religion .242** 0.00

Rate of Return ��** ��

Customer Perception .160** 0.11

:KHQ� FRUUHODWLRQ� LV� VHHQ� LQ� FDVH� RI� ,VODPLF� EDQNV� WKHQ� WKH� DERYH� JLYHQ� WDEOH� VKRZV� WKDW�independent variables are having correlation with the decision making in the banking sector. From the above table it is proved that all the independent variables are having positive correlation with the dependent variable. Rate of return is having normal correlation with investment decision making (r = ��:KLOH�3V\FKRORJ\�LV�KDYLQJ�D�VWURQJ�FRUUHODWLRQ�ZLWK�WKH�LQYHVWPHQW�GHFLVLRQ�PDNLQJ��U� ��As far as the Religion is concerned, it is also having positive correlation with the dependent variable as well (r = .242).Culture also has strong correlation with investment decision making. And customer perception also has normal correlation with investment decision making (r = .160).

Conventional banks

��%�5HOLDELOLW\�RI�WKH�4XHVWLRQQDLUHV�IURP�ERWK�FXVWRPHUV��EDQN�RI¿FHU��&RQYHQWLRQDO�banks)

Table - 4.2.b

Variables Cronbach’s Alpha

Psychology 396.

Culture ��.

Religion 421.

Rate of Return 421.

Customer Perception ��.

overall value of variables 719.

Cronbach’s Alpha shows the reliability of the questionnaire. So that’s why the reliability of the questionnaire is tested using Cronbach’s Alpha and it is .396 for Psychology,�� for Culture, .421 for



Religion, .421 for Rate of return and��IRU�&XVWRPHU�SHUFHSWLRQ. The reliability for Customer perception, Rate of return and religion is the highest while for Psychology and culture it is lowest of them all.

4.3.B- Regression Analysis (Conventional banks)

Table - 4.3-B

Model R R Square Adjusted R Square

1 .406 .165 .155

In case of Conventional banks, here in this model multiple regression analysis was conducted. This PRGHO�LV�DOVR�VLJQL¿FDQW�DQG�KDYLQJ�S��7KH�YDOXH�RI�5��LV��DQG�WKH�YDOXH�RI�DGMXVWHG�5��LV�.155 which means that the 15.5% variation in the dependent variable can be explained by this model. R2 is useful for giving some prediction about the model. And the adjusted R2 provides a better estimation about the true population value

4.4. B Multi-Collinearity Analysis (Conventional Banks)

Table – 4.4-B

Collinearity statistics

Tolerance VIF

Psychology ��. ��.

Culture ��. 1.159

Religion 939. 1.065

Rate Of Return 740. 1.351

Customer Perception 776. ��

In order to test whether multi-Collinearity exists or not, tests had been applied as well. Multi-Collinearity is the correlation among the independent variables, so that is why it is tested on the eleventh and twelfth hypotheses. And for the data to be reliable, it must be free from the multi-Collinearity. In RUGHU�WR�FKHFN�PXOWL�&ROOLQHDULW\��9,)��9DULDEOH�,QÀXHQFH�)DFWRU��DQG�7ROHUDQFH�OHYHO�LV�FKHFNHG��$V�SHU�VWDQGDUGV��LI�WKH�YDOXH�RI�9,)�LV�JUHDWHU�WKDQ��WKHQ�WKDW�PHDQV�PXOWL�&ROOLQHDULW\�H[LVWV�DPRQJ�variables. And if the value of Tolerance is less than .10 then that means multi-Collinearity exists among WKH�YDULDEOHV��,Q�RXU�UHVHDUFK�UHVXOWV��WKH�YDOXH�RI�9,)�RI�3V\FKRORJ\�LV��DQG�WKH�WROHUDQFH�YDOXH�LV��%RWK�YDOXHV�DUH�ZHOO�ZLWKLQ�WKH�DFFHSWDEOH�UDQJH�ZKLFK�PHDQV�WKDW�PXOWL�&ROOLQHDULW\�GRHV�QRW�H[LVW� LQ�3V\FKRORJ\��6DPH�LV�WKH�FDVH�ZLWK�WKH�&XOWXUH�9,)�YDOXH�LV� ��DQG�7ROHUDQFH�LV��,Q�FDVH�RI�5HOLJLRQ�9,)�YDOXH�LV��DQG�7ROHUDQFH�YDOXH�LV��,Q�WKH�FDVH�ZLWK�WKH�5DWH�RI�UHWXUQ�9,)�YDOXH�LV��DQG�7ROHUDQFH�LV��DQG�LQ�WKH�FDVH�ZLWK�WKH�&XVWRPHU�SHUFHSWLRQ�9,)�YDOXH�LV��DQG�



7ROHUDQFH�LV��6R�EDVHG�RQ�WKH�UHVXOWV��LW�LV�FRQFOXGHG�WKDW�PXOWL�&ROOLQHDULW\�LV�QRW�SUHVHQW�LQ�WKH�selected independent variables.

4.5-B Auto-correlation Analysis (Conventional Banks)

Table - 4.5B

Durbin Watson

��

7KH�YDOXH�RI�'XUELQ�:DWVRQ�LV��$FFRUGLQJ�WR�WKH�VWDQGDUGV��WKH�YDOXH�RI�WKH�'XUELQ�:DWVRQ�VKRXOG�UDQJH�IURP��WR��,Q� WKLV�FDVH�� WKH�YDOXH�LV��ZKLFK�UHÀHFWV� WKDW�QR�DXWR�FRUUHODWLRQ�exists in data, which means that this model is free from auto-correlation.

4.6-B -Correlation Analysis (Conventional Banks)

Table - 4.6-B

Variables Karl Pearson’s Correlation (Employee Performance) 6LJQL¿FDQFH��WDLOHG�

Psychology .261** 0.00

Culture .169** 0.00

Religion .177** 0.00

Rate of Return ��** 0.00

Customer Perception .232** 0.00

In case of correlation analysis in Conventional banks the above given table shows that independent variables are having correlation with the decision making in the banking sector. From the above table it is proved that all the independent variables are having positive correlation with the dependent variable. Culture is having normal correlation with investment decision making (r = .169**��:KLOH�5DWH�RI�UHWXUQ�LV�KDYLQJ�D�VWURQJ�FRUUHODWLRQ�ZLWK�WKH�LQYHVWPHQW�GHFLVLRQ�PDNLQJ��U� ��$V�IDU�DV�WKH�FXVWRPHU�perception is concerned, it is also having positive correlation with the dependent variable as well (r = .232).Psychology also has strong correlation with investment decision making(r=.261). And Religion also has normal correlation with investment decision making (r = .177).

��%DQN�2I¿FHUV�DQG�%DQN�&XVWRPHUV�FRPELQH�'DWD�$QDO\VLV�

Demographic data and Distribution of Participant:

Bank Names

7KH�GDWD�VKRZV�WKH�SHUFHQWDJH�RI�UHVSRQGHQW�RI�WKH�EDQNHUV�ZKR�WRRN�SDUW�LQ�WKH�IXO¿OOPHQW�RI�questionnaires .13.90%� RI� WKH� WRWDO� TXHVWLRQQDLUHV� ¿OOHG� E\� +%/� ¿QDQFLDO� RI¿FHU�� 0&%� ¿QDQFLDO�RI¿FHUV�¿OOHG�12.32% of the total questionnaires. 12.46%�TXHVWLRQQDLUHV�DUH�¿OOHG�E\�%DQN�$/�+DELE�¿QDQFLDO�RI¿FHUV��13.04%�TXHVWLRQQDLUHV�¿OOHG�E\�%23�¿QDQFLDO�RI¿FHUV��12.32%�TXHVWLRQQDLUHV�¿OOHG�E\�8%/�DQG�WKHQ�'XEDL�,VODPLF�%DQN¶V�RI¿FHUV�¿OOHG�12.89% of the total questionnaires and at the last



0HH]DQ�EDQN�/LPLWHG�¿QDQFLDO�RI¿FHUV�¿OOHG�23.07% of the total questionnaires which is highest of them all.

Gender description

In the study the data was collected from samples. The samples that provided their gender information are 74.07% males and 25.93% females

Marital Status Description

$FFRUGLQJ�WR�VWDWLVWLFV��ZHUH�PDUULHG�UHSUHVHQWLQJ�63.04% of the total samples were unmarried representing 36.82% of response and only one who is widow that show 0.14% in overall questionnaires.

Educational Status Description

$FFRUGLQJ� WR�EDQN�¿QDQFLDO�RI¿FHUV�30.23%�RI¿FHUV�DUH�JUDGXDWHG��56.86%�RI¿FHUV�ZKR�¿OOHG�questionnaires are masters. .145% doing MPhil, 5% did metric, 5.30% did intermediate.

Work Experience Description

From samples representing 49% response rate have experience ranging from 1-5 and most of them having 2 and 3 years’ experience. And 21.78% responses have 6-10 years’ experience. And 8.31% responses have 11-15 years’ experience. And 5.30% have 16-20 years’ experience. 19 and 4.44% have 21-25 years’ 090experience. And 3.58% have 26-30 years’ experience and only 1 and 6.2% have above than 30 years’ experience

Table- 4.8- A

Hypothesis statements Accepted Rejected

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�UHWXUQ�RQ�LQYHVWPHQW�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�UHOLJLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV� ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXOWXUH�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV� ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXVWRPHU�SHUFHSWLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�SV\FKRORJLFDO�EDVLV�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�FRQYHQWLRQDO�EDQNV ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�UHWXUQ�RQ�LQYHVWPHQW�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�EDQNV ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�UHOLJLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�EDQNV� ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXOWXUH�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�EDQNV� ß

+� �7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�FXVWRPHU�SHUFHSWLRQ�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�LQ�,VODPLF�EDQNV ß

+�� 7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�SV\FKRORJLFDO�EDVLV�RQ�GHFLVLRQ�PDNLQJ�RI�LQYHVWPHQW�,Q�,VODPLF�EDQNV ß



+�� 7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�DOO�LQGHSHQGHQW�YDULDEOHV�RQ�LQYHVWPHQW�GHFLVLRQ�PDNLQJ�FRQYHQWLRQDO�EDQNV ß

+�� 7KHUH�LV�VLJQL¿FDQW�HIIHFW�RI�DOO�LQGHSHQGHQW�YDULDEOHV�LQYHVWPHQW�GHFLVLRQ�PDNLQJ�LQ�,VODPLF�EDQNV ß

Table No-4.9- A (Conventional Bank) Paired sample difference statistics table

Decision Making Mean Std.

Deviation

Std. ErrorMean

CI 95%Lower

CI 95%Upper

t df.Sig

(2-tailed)

Psychology .21076 .92674 ��. .12452 .29700 �� 445 .000

Culture �� 1.03445 ��. -.20015 -.00762 -2.121 445 .034

Rate of return �� 04510. .03916 .21644 �� 445 .005

Religion �� 1.09651 05192. -.36363 -.15954 �� 445 .000

Customerperception

.33632 �� 05626. .22575 �� 445 .000

All independentvariables

�� .97431 .04613 -.17737 00397. �� 445 .061

In case of conventional banks the Psychology null hypothesis is rejected and alternative hypothesis LV� DFFHSWHG�� %DNDU� �� VRXJKW� WR� LGHQWLI\� WKDW� SV\FKRORJ\� KDV� VLJQL¿FDQW� HIIHFW� RQ� LQYHVWPHQW�decision making.

In case of culture we can say null hypothesis is accepted. And alternative hypothesis is rejected. Diouf (2016) investigated in his work that only Demographic factors effect on investment decision making and he concluded in his research that investment decision making and social factors have LQVLJQL¿FDQW�UHODWLRQ�

In case of Religion null hypothesis is rejected. And alternative hypothesis is accepted,Q�FDVH�RI�UDWH�RI�UHWXUQ�QXOO�K\SRWKHVLV�LV�UHMHFWHG��$QG�DOWHUQDWLYH�K\SRWKHVLV�LV�DFFHSWHG��+DP]D�

�� LQYHVWLJDWHG� LQ� KLV�ZRUN� WKDW� UDWH� RI� UHWXUQ� DQG� LQYHVWPHQW� GHFLVLRQ�PDNLQJ� KDV� VLJQL¿FDQW�relationship.

In this case of customer perception null hypothesis is rejected. And alternative hypothesis is accepted.

In case of all independent variables impact on investment decision making the null hypothesis is accepted and alternative hypothesis is rejected

Table No-4.9- B (Islamic Banks) Paired sample difference statistics table

Decision Making Mean Std.

Deviation

Std. ErrorMean

CI 95%Lower

CI 95%Upper

t df.Sig

(2-tailed)

Psychology .45020 1.22477 .07731 .29794 .60246 �� 250 .000

Culture .11023 1.25141 �� -.04534 .26579 1.395 250 .164

Rate of return -.14343 1.54453 .09749 -.33543 �� -1.471 250 .142

Religion 26959. 1.44635 09129. ��. 44939. 2.953 250 003.



Customerperception

-1.72244 3.02500 .19094 �� -1.34639 -9.021 250 .000

All-independentvariables

-2.21116 3.72572 .23517 -2.67431 �� -9.403 250 .000

In case of Islamic banks the Psychology null hypothesis is rejected and alternative hypothesis is DFFHSWHG��%DNDU��VRXJKW�WR�LGHQWLI\�WKDW�SV\FKRORJ\�KDV�VLJQL¿FDQW�HIIHFW�RQ�LQYHVWPHQW�GHFLVLRQ�making.

In case of culture we can say null hypothesis is accepted. And alternative hypothesis is rejected. Diouf (2016) investigated in his work that only Demographic factors effect on investment decision making and he concluded in his research that investment decision making and social factors have LQVLJQL¿FDQW�UHODWLRQ�

In case of Religion null hypothesis is rejected. And alternative hypothesis is accepted.

In case of rate of return null hypothesis is accepted. And alternative hypothesis is rejected.

In this case of customer perception null hypothesis is rejected. And alternative hypothesis is accepted.

In case of all independent variables impact on investment decision making the null hypothesis is rejected and alternative hypothesis is accepted.

5. Conclusion

$Q� LQGLYLGXDO� LQYHVWRU�SDUWDNHV� LQ� VDYLQJV� IRU� IXWXUH� FRQFHUQV� DIWHU� WKH� IXO¿OOPHQW�RI� WKH�EDVLF�needs. In the banking sector, an individual investor trusts on banks that their savings are secure. But different factors affect the decision making of the investor.

,Q� WKH� UHVHDUFK� WKH� WRS�¿YH�FRQYHQWLRQDO�EDQNV�ZHUH� VHOHFWHG�ZKLOH�RQO\�� ,VODPLF�EDQNV�ZHUH�selected for the research study. The reason for selecting the 02 Islamic banks are that the Islamic banking system is a growing sector in which almost all the conventional banks are entered but they are still not fully reformed and it will take time for them to operate fully according to the Islamic Sharia rules. The 02 banks that are wholly equipped with these are selected. In this research, six independent variables such as Psychology, Rate of return, religion, culture and customer perception were taken as important factors. To pursue the results, multiple regression analysis, correlation analysis and descriptive analysis were applied in SPSS software. It was observed that in case of Islamic banks the VLJQL¿FDQW�UHODWLRQVKLS�H[LVWV�DPRQJ�3V\FKRORJ\��UHOLJLRQ��FXVWRPHU�SHUFHSWLRQ�DQG�DOO�YDULDEOHV�LPSDFW�RQ�LQYHVWPHQW�GHFLVLRQ�PDNLQJ��$QG�LQVLJQL¿FDQW�UHODWLRQVKLSV�H[LVW�DPRQJ�FXOWXUH�DQG�UDWH�RI�UHWXUQ�ZLWK�LQYHVWPHQW�GHFLVLRQ�PDNLQJ��%XW�LQ�FDVH�RI�&RQYHQWLRQDO�EDQNV�WKHUH�LV�VLJQL¿FDQW�UHODWLRQVKLS�among rate of return, psychology, religion, and customer perception with investment decision making. $QG�LQVLJQL¿FDQW�UHODWLRQVKLS�H[LVWV�DPRQJ�&XOWXUH�DQG�DOO�YDULDEOHV�LPSDFW�ZLWK�LQYHVWPHQW�GHFLVLRQ�making. It can be said that overall survey of this research study concludes that most of the variables KDYH�VLJQL¿FDQW�UHODWLRQVKLS�ZLWK�WKH�LQYHVWPHQW�GHFLVLRQ�PDNLQJ�WKDW�LV�WKH�GHSHQGHQW�YDULDEOH��

Usually the customers are confused in the decision making towards the Islamic banks or Conventional banks. The religion is the important variables that are the cause of this confusion among the individuals. Another important thing that was observed during this research study was that the banks have offered a variety of investment products for the customers that create hype in the individuals in their selection.



7KH�ZRUOG�KDV�FKDQJHG�D�ORW�WKDQNV�WR�WKH�JOREDOL]DWLRQ��:KHUH�LW�PDGH�SRVLWLYH�FKDQJHV��LW�DOVR�affected the world in a negative way as well. In this study, it was also observed that in the past when people were less aware of their rights, reality and less informed about the global and local practices of banks in investment areas but now the trend has changed. Now people are more aware, they do compare and research before taking any investment policy.

5.1 Policy Implications

This study will directly affect the planning and decision making of all the Banks. It will provide a framework for banks, so they can design such saving or investment plans for their customers that can satisfy or attract their customers towards their investment plans that will increase their business.

This can provide investors all the available information and they can make rational investment decision. This study is not only for Banks but will also be helpful for regulatory authorities and exchange may also use the results to create awareness by educating investors about the importance of behavioral IDFWRUV�DQG�¿UP�OHYHO�FRUSRUDWH�*RYHUQDQFH��$GGLWLRQDOO\�LW�PD\�KHOS�WR�LQFUHDVH�LQYHVWRUV¶�FRQ¿GHQFH�

7KH�¿QGLQJV�RI� WKLV� VWXG\�DUH�EHQH¿FLDO� IRU� WKH�¿QDQFLDO�SURIHVVLRQDO� DQG� LQYHVWPHQW� DGYLVRUV��It can support Islamic and conventional banking mangers to concentrate on their bank products and policies that will help them for future planning. Eventually, they can make drastic improvement in their RUJDQL]DWLRQV�

5.2 Limitations and Recommendations

%�In current research, we examined only six basic and most important factors but in the future researchers PD\�LQFUHDVH�DGG�RWKHU�LPSRUWDQW�YDULDEOHV�WKDW�PD\�HQKDQFH�WKH�YLDELOLW\�DV�ZHOO��

%� 2QO\� WRS� VHYHQ� EDQNV¶� ¿QDQFLDO� RI¿FHUV� DQG� FXVWRPHUV¶� RSLQLRQ� KDYH� EHHQ� LQFOXGHG� DOWKRXJK�researchers may increase the quantity of the banks as well.

%�7KLV�UHVHDUFK�ZRUN�GRHV�QRW�FRYHU�WKH�ZKROH�SRSXODWLRQ�RI�3DNLVWDQ�EXW�LW�PLJKW�EH�DPSOL¿HG�DV�ZHOO�

%�SPSS (Statistical Package for Social Sciences) software has been used. However, new improved software might be used such as AMOS software which is the advanced form of SPSS in research arena.

References

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$EGXVVDODQ��=��7KH�LQÀXHQFH�RI�FXOWXUH�DQG�UHOLJLRQ�RQ�WUXVW�LQ�WKH�HPHUJLQJ�¿QDQFLDO�PDUNHW�LQ�Libya, International Journal Behavioral Accounting and Finance,4(3): 206-220.

Ahmed, S. & Ullah, N. (2013). Investor sentiment and stock market dynamics: a case of Pakistan, Journal Of Public Administration, Finance And Law, 4 (4):126-135.

Bakara, S. &Yia, A, N, (2016). The impact of Psychological factors on investment decision making in 0DOD\VLDQ� VWRFN�PDUNHW��$� FDVH� RI�.ODQJ�9DOOH\� DQG� 3DKDQJ�� Journal of Procedia Economics and Finance.7th International Economics & Business Management�&RQIHUHQFH��WK��WK��

'LRXI�� '�� +HEE�� 7�� 7RXUH�� (�� +�� ([SORULQJ� IDFWRUV� WKDW� LQÀXHQFH� VRFLDO� UHWDLO� LQYHVWRU¶V�decision: Evidence from Desjardins fund, Journal of Business Ethics, 1(1): 45-67.

Esam, M. (2013). Comparative performance study of conventional and Islamic Banking in Egypt, Journal of Applied Finance & Banking, 3(2): 1-14.



+DP]D�� +�� 'RHV� LQYHVWPHQW� GHSRVLW� UHWXUQ� LQ� ,VODPLF� EDQNV� UHÀHFW� 3/6� SULQFLSOH"�Borsa Istanbul Review,16 (1): 32-42.

Kavitha, C. (2015). Investors attitudes towards Stock Market Investment, International Journal of VFLHQWL¿F�UHVHDUFK�DQG�PDQDJHPHQW��,-650��

Meutia, I. (2016). Empirical research on rate of return, interest rate and Mudarbah deposit, International Journal of Accounting Research, 5(1): 1-5

Parimaluckanthi, K. & Kumar, M, A. 2015. A study pertaining to investment behavior of individual investors in coimbatore city,International Journal of Advance Research in Computer Science and Management Studies, 3(6):149-157.

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5L]ZDQ�8OODK��0��0DKPRRG��6��5DQGKDZDQ��5��$Q�H[DPLQDWLRQ�RI�HPSLULFDO�UHODWLRQVKLS�EHWZHHQ�LQYHVWPHQW�GHFLVLRQ�DQG�¿QDQFLQJ�GHFLVLRQ��WKH�FDVH�VWXG\�RQ�3DNLVWDQL�EDQNV. Journal IISTE��

6RKDLO��$��+DP]D��0��,MD]��)��$]HHP��0��3HUFHSWLRQ�RI�LQGLYLGXDO�FRQVXPHUV�WRZDUG�,VODPLF�banking products in services, Pakistan, Journal of Poverty, Investment and Development, 5(5): ��

9HOPXUXJDQ�*��6HOYDP��9��DQG�1D]DU��1��$��$Q�HPSLULFDO�DQDO\VLV�RQ�SHUFHSWLRQ�RI�LQYHVWRUV¶�towards various investment avenues,Mediterranean, Journal of Social Sciences 6(4): 427-435.

Yasir,M. &Aamir, S. (2014). Attitude of Pakistan’s individual investor towards risk during bull and bear markets, VFAST Transactions on Education and Social Sciences��

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deposits in Islamic banks, International Journal of Economics and Financial Issues, 6 (S7): 296-303.

Appendices/Supplementary:

1: Survey Questionnaires on Factors Affecting investment Decision in Banking sectors of Pakistan:

Analysis of Islamic and conventional Banks (April, 2017)

Dear prospective Participant

7KH� IROORZLQJ�TXHVWLRQQDLUH� LV�GHVLJQHG� WR�GH¿QH� WKH�SUR¿OHV�RI� LQGLYLGXDO� LQYHVWRUV�DQG� WKHLU�¿QDQFLDO�SUHIHUHQFHV�LQ�3DNLVWDQ��7KH�LQIRUPDWLRQ�JDWKHUHG�KHUH�ZLOO�FRQVWLWXWH�D�VRXUFH�IRU�DQ�03KLO�GHJUHH�WKHVLV��7KHUHIRUH��\RX�DUH�DVNHG�WR�¿OO�RXW�WKH�IROORZLQJ�TXHVWLRQQDLUH�DV�SUHFLVHO\�DQG�DFFXUDWHO\�as you can. The results will be used for a general assessment and your answers will be used only for WKLV�VWXG\�FRQ¿GHQWLDOO\�



Customer Name Gender

Customer Age Marital status

Educational status Occupation

:RUN�H[SHULHQFH Bank Name

Please read each statement carefully and rate each statement according to scale below to indicate how much agree with them.

StatementsStrongly

agreeAgree Neutral Disagree

Stronglydisagree

1. I like Islamic banking investment because it has interest (Riba) free investment system.

1 2 3 4 5

2. I like Islamic banking because of Islamic envoirment in Pakistan.

1 2 3 4 5

3. I like Islamic banking investment because I like its investment products, services and Islamic polices.

1 2 3 4 5

4. Bank reputation is very important for me to decide investment in a bank.

1 2 3 4 5

5. My previous investment experience with any bank effect on me to decide investment in banking investment products.

1 2 3 4 5

��0\�SHUVRQDOLW\�DQG�RYHUFRQ¿GHQFH�HIIHFW�RQ�PH�WR�decide investment in banking investment products.

1 2 3 4 5

7. My family structure effect on me to decide investment in banking investment products.

1 2 3 4 5

��6RFLDO�PHGLD�HIIHFW�RQ�PH�WR�GHFLGH�LQYHVWPHQW�LQ�banking investment products.

1 2 3 4 5

9. My social interaction effect on me to decide investment in banking investment products.

1 2 3 4 5

10. Religious orthodox in Pakistan effect on me to decide investment in banking investment products.

1 2 3 4 5

11. I feel religious satisfaction when I invest in Islamic banking investment products.

1 2 3 4 5

12. Ethical judgment of religion effect on me to decide investment in banking investment products.

1 2 3 4 5

13. As Religious and non- religious investor I consider rate of return during my decision making in EDQNLQJ�LQYHVWPHQW�SURGXFWV"

1 2 3 4 5

14. Rate of return is ultimate factor that can effect on me to decide investment in banking investment products.

1 2 3 4 5

15. Financial literacy effect on me to decide investment in banking investment products.

1 2 3 4 5

16. As my perception the basic factor that effect on me to decide investment in banking investment products.

Rate ofreturn

psychology culture religion Some other

Reason

17. As my perception the most important factor that effect on me to decide investment in banking investment products.

Rate ofreturn

psychology culture religion Some other

Reason

��$V�P\�SHUFHSWLRQ�ZKHQ�,�ZDQW�WR�LQYHVW�LQ�EDQNLQJ�LQYHVWPHQW�products then this factor effect on me during my decision making.

Rate ofreturn

psychologyculture

religion Some other

Reason



��,�QHHG�P\�IDPLO\�DQG�IULHQGV��ZLIH��VRQ�GDXJKWHU��SDUHQWV��DVVLVWDQFH�GXULQJ�P\�LQYHVWPHQW�GHFLVLRQ�PDNLQJ"

1 2 3 4 5

��,�FRQVLGHU�EDQNLQJ�RI¿FHU¶V�DGYLFH�GXULQJ�P\�GHFLVLRQ�PDNLQJ"

1 2 3 4 5

��,�PDNH�P\�GHFLVLRQ�E\�P\VHOI�ZKHQ�L�LQYHVW�LQ�EDQNV" 1 2 3 4 52: Survey Questionnaires on Factors Affecting investment Decision in banking sectors of Pakistan:

Analysis of Islamic & conventional banks (April, 2017)

Dear prospective Participant

7KH�IROORZLQJ�TXHVWLRQQDLUH�LV�GHVLJQHG�WR�GH¿QH�WKH�SUR¿OHV�RI�LQGLYLGXDO�LQYHVWRUV�DQG�WKHLU�¿QDQFLDO�preferences in Pakistan. The information gathered here will constitute a source for an MPhil degree WKHVLV��7KHUHIRUH��\RX�DUH�DVNHG�WR�¿OO�RXW�WKH�IROORZLQJ�TXHVWLRQQDLUH�DV�SUHFLVHO\�DQG�DFFXUDWHO\�DV�you can. The results will be used for a general assessment and your answers will be used only for this VWXG\�FRQ¿GHQWLDOO\�

2I¿FHU�1DPH Gender

2I¿FHU�$JH Marital status

2I¿FHU�(GXFDWLRQDO�VWDWXV Occupation

2I¿FHU�:RUN�H[SHULHQFH Bank Name

Please read each statement carefully and rate each statement according to scale below to indicate how much agree with them.

StatementsStrongly

agreeAgree Neutral Disagree

Stronglydisagree

Does investor’s psychology about banking"Reputation effect on investment decision in banking products

1 2 3 4 5

Does investor’s psychology about previous investment experience effect"on investment decision making in banking investment products

1 2 3 4 5

'RHV�LQYHVWRU¶V�SHUVRQDOLW\�DQG�RYHUFRQ¿GHQFH�HIIHFW�RQ"investment decision making in banking investment products

1 2 3 4 5

Does investor’s family structure effect on investment GHFLVLRQ�PDNLQJ�LQ�EDQNLQJ�LQYHVWPHQW�SURGXFWV"

1 2 3 4 5

Does social media effect on investment decision PDNLQJ�LQ�EDQNLQJ�LQYHVWPHQW�SURGXFWV"

1 2 3 4 5

Does social interaction effect on investment GHFLVLRQ�PDNLQJ�LQ�EDQNLQJ�LQYHVWPHQW�SURGXFWV"

1 2 3 4 5

Does different religious orthodox in Pakistan effect on LQYHVWPHQW�GHFLVLRQ�PDNLQJ�LQ�EDQNLQJ�LQYHVWPHQW�SURGXFWV"

1 2 3 4 5

Does Pakistani investor feel religious satisfaction during their LQYHVWPHQW�GHFLVLRQ�PDNLQJ�LQ�EDQNLQJ�LQYHVWPHQW�SURGXFWV"

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